Reforming the Ripoff Clause: Why Access to Justice Matters for Accountability and the EconomyFortunately, some lawmakers and federal regulators are seeking to turn this trend around and protect individual and class action rights. This event will gather legal experts, consumer advocates, and others to explore how mandatory arbitration clauses harm the public, as well as the efforts that can be taken to restore access to justice.

KB Home Class Action Binding Arbitration Case to be ruled on in a Laredo District Court

At issue is that KB Home misled and misinformed homeowners of their consumer rights and remedies, that their actions were in violation of the 1979 federal consent decree, and that the clause is invalid and unenforceable. Houston lawyer Alice Oliver-Parrott, the attorney representing homeowners, says that if they win the approval, she will ask the judge to have KB Home notify consumers that binding arbitration provisions are void and unenforceable.

HOAs claim victory in arbitration caseThe Colorado Supreme Court last month quietly let stand a Court of Appeals decision that homeowner associations cannot be forced into arbitration by builders and general contractors. It's a huge victory for homeowner associations in Colorado, said Christopher Rhody, the attorney representing the Eagle Ridge Condominium Association in a lawsuit over construction defects."... The association wanted to tell their story to a jury," Rhody said. "A jury of 12 is often a fairer form to hear their side than in front of a single arbitrator, who is usually chosen by the builder." In addition, he argued it is "inherently unfair for builders to shield themselves from liability for shoddy construction before the houses are even built." He said the Court of Appeals' decision, which the Supreme Court let stand, "holds home builders responsible for their actions."

Builders leave Better Business BureauSome builders are dropping their membership in the Better Business Bureau of Metropolitan Houston because they don't want to use the alternative dispute resolution process, a process they agreed to as terms of their membership. Instead, they'd rather disputes go through the American Arbitration Association or the Texas Residential Construction Commission...(Toy Wood,CEOof theGreaterHoustonBuilders Association)"And although our reasons for creating the TRCC and the various associated processes were very worthy, we were creating another bureaucracy," she wrote. "While we maintain control of the commission, we must be just as vigilant with the TRCC as we are with any other agency or commission."